Congressional Record, Volume 144 Issue 146 (Wednesday, October 14, 1998)

[Congressional Record Volume 144, Number 146 (Wednesday, October 14, 1998)]
[House]
[Pages H10841-H10844]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

CANYON FERRY RESERVOIR LEASEHOLD CONVEYANCE

Mr. HANSEN. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 3963) to establish terms and conditions under which the
Secretary of the Interior shall convey leaseholds in certain properties
around Canyon Ferry Reservoir, Montana, as amended.
The Clerk read as follows:

H.R. 3963

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. FINDINGS.

Congress finds that the conveyance of the properties
described in section 4(b) to the lessees of those properties
for fair market value would have the beneficial results of--
(1) reducing Pick-Sloan project debt for the Canyon Ferry
Unit;
(2) providing a permanent source of funding to acquire
publicly accessible land and interests in land, including
easements and conservation easements, in the State from
willing sellers at fair market value to--
(A) restore and conserve fisheries habitat, including
riparian habitat;
(B) restore and conserve wildlife habitat;
(C) enhance public hunting, fishing, and recreational
opportunities; and
(D) improve public access to public land;
(3) eliminating Federal payments in lieu of taxes and
associated management expenditures in connection with the
Federal Government's ownership of the properties while
increasing local tax revenues from the new owners; and
(4) eliminating expensive and contentious disputes between
the Secretary and leaseholders while ensuring that the
Federal Government receives full and fair value for the
properties.

SEC. 2. PURPOSES.

The purposes of this Act are to--
(1) establish terms and conditions under which the
Secretary of the Interior shall, for fair market value,
convey certain properties around Canyon Ferry Reservoir,
Montana, to private parties; and
(2) acquire certain land for fish and wildlife conservation
purposes.

SEC. 3. DEFINITIONS.

In this Act:
(1) Canyon ferry-broadwater county trust.--The term
``Canyon Ferry-Broadwater County Trust'' means the Canyon
Ferry-Broadwater County Trust established under section 8.
(2) CFRA.--The term ``CFRA'' means the Canyon Ferry
Recreation Association, Incorporated, a Montana corporation.
(3) Commissioners.--The term ``Commissioners'' means the
Board of Commissioners for Broadwater County, Montana.
(4) Lease.--The term ``lease'' means a lease or permit in
effect on the date of enactment of this Act that gives a
leaseholder the right to occupy a property.
(5) Lessee.--The term ``lessee'' means--
(A) the leaseholder of 1 of the properties on the date of
enactment of this Act; and
(B) the leaseholder's heirs, executors, and assigns of the
leasehold interest in the property.
(6) Montana fish and wildlife conservation trust.--The term
``Montana Fish and Wildlife Conservation Trust'' means the
Montana Fish and Wildlife Conservation Trust established
under section 7.
(7) Project.--The term ``project'' means the Canyon Ferry
Unit of the Pick-Sloan Missouri River Basin Project.
(8) Property.--
(A) In general.--The term ``property'' means 1 of the cabin
sites described in section 4(b).
(B) Use in the plural.--The term ``properties'' means all
265 of the properties and any contiguous parcels referred to
in section 4(b)(1)(B).
(9) Purchaser.--The term ``purchaser'' means a person or
entity, excluding CFRA or a lessee, that purchases the
properties under section 4.
(10) Reservoir.--The term ``Reservoir'' means the Canyon
Ferry Reservoir, Montana.
(11) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(12) State.--The term ``State'' means the State of Montana.

SEC. 4. SALE OF PROPERTIES.

(a) In General.--Consistent with the Act of June 17, 1902
(32 Stat. 388, chapter 1093) and Acts supplemental to and
amendatory of that Act (43 U.S.C. 371 et seq.), the Secretary
shall convey to CFRA or a purchaser--
(1) all right, title, and interest (except the mineral
estate) of the United States in and to the properties,
subject to valid existing rights and the operational
requirements of the Pick-Sloan Missouri River Basin Program;
and
(2) perpetual easements for--
(A) vehicular access to each property;
(B) access to and use of 1 dock per property; and
(C) access to and use of all boathouses, ramps, retaining
walls, and other improvements for which access is provided in
the leases as of the date of enactment of this Act.
(b) Description of Properties.--
(1) In general.--The properties to be conveyed are--
(A) the 265 cabin sites of the Bureau of Reclamation
located along the northern end of the Reservoir in portions
of sections 2, 11, 12, 13, 15, 22, 23, and 26, Township 10
North, Range 1 West; and
(B) any small parcel contiguous to any property (not
including shoreline or land needed to provide public access
to the shoreline of the Reservoir) that the Secretary
determines should be conveyed in order to eliminate an
inholding and facilitate administration of surrounding land
remaining in Federal ownership.
(2) Acreage; legal description.--The acreage and legal
description of each property and of each parcel shall be
determined by the Secretary in consultation with CFRA.
(3) Restrictive use covenant.--
(A) In general.--In order to maintain the unique character
of the Reservoir area, the Secretary, the purchaser, CFRA,
and each subsequent owner of each property shall covenant
that the use restrictions to carry out subparagraphs (B) and
(C) shall--
(i) be appurtenant to, and run, with each property; and
(ii) be binding on each subsequent owner of each property.
(B) Access to reservoir.--
(i) In general.--The Secretary, the purchaser, CFRA, and
the subsequent owners of each property shall ensure that--

(I) public access to and along the shoreline of the
Reservoir in existence on the date of enactment of this Act
is not obstructed; and
(II) adequate public access to and along the shoreline of
the Reservoir is maintained.

(ii) Federal reclamation law.--

(I) In general.--No conveyance of property under this Act
shall restrict or limit the authority or ability of the
Secretary to fulfill the duties of the Secretary under the
Act of June 17, 1902 (32 Stat. 388, chapter 1093), and Acts
supplemental to and amendatory of that Act (43 U.S.C. 371 et
seq.).
(II) No liability.--The operation of the Reservoir by the
Secretary in fulfillment of the duties described in subclause
(I) shall not result in liability for damages, direct or
indirect, to the owner of any property conveyed under section
4(a) or damages from any loss of use or enjoyment of the
property.

(C) Historical use.--The Secretary, the purchaser, CFRA,
and each subsequent owner of each property shall covenant
that future uses of the property shall be limited to the type
and intensity of uses in existence on the date of enactment
of this Act, as limited by the prohibitions contained in the
annual operating plan of the Bureau of Reclamation for the
Reservoir in effect on October 1, 1998.
(c) Purchase Process.--
(1) In general.--The Secretary shall--
(A) solicit sealed bids for the properties;
(B) subject to paragraph (2), sell the properties to the
bidder that submits the highest bid above the minimum bid
determined under paragraph (2); and
(C) not accept any bid for less than all of the properties
in 1 transaction.
(2) Minimum bid.--
(A) In general.--Before accepting bids, the Secretary shall
establish a minimum bid, which shall be equal to the fair
market value of the properties determined by an appraisal of
each property, exclusive of the value of private improvements
made by the leaseholders before the date of the conveyance,
in conformance with the Uniform Appraisal Standards for
Federal Land Acquistion.
(B) Fair market value.--Any dispute over the fair market
value of a property under subparagraph (A) shall be resolved
in accordance with section 2201.4 of title 43, Code of
Federal Regulations.
(3) Right of first refusal.--If the highest bidder is other
than CFRA, CFRA shall have the right to match the highest bid
and purchase the properties at a price equal to the amount of
the highest bid.
(d) Terms of Conveyance.--
(1) Purchaser.--If the highest bidder is other than CFRA,
and CFRA does not match the highest bid, the following shall
apply:
(A) Payment.--The purchaser shall pay the amount bid to the
Secretary for distribution in accordance with section 6.
(B) Conveyance.--The Secretary shall convey the properties
to the purchaser.
(C) Option to purchase.--The purchaser shall give each
lessee of a property conveyed under this section an option to
purchase the property at fair market value, as determined
under subsection (c)(2).
(D) Nonpurchasing lessees.--
(i) Right to continue lease.--A lessee that is unable or
unwilling to purchase a

[[Page H10842]]

property shall be provided the opportunity to continue to
lease the property for fair market value rent under the same
terms and conditions as apply under the existing lease for
the property, and shall have the right to renew the term of
the existing lease for 2 consecutive 5-year terms.
(ii) Compensation for improvements.--If a lessee declines
to purchase a property, the purchaser shall compensate the
lessee for the fair market value, as determined pursuant to
customary appraisal procedures, of all improvements made to
the property by the lessee. The lessee may sell the
improvements to the purchaser at any time, but the sale shall
be completed by the final termination of the lease, after all
renewals under clause (i).
(2) CFRA.--If CFRA is the highest bidder, or matches the
highest bid, the following shall apply:
(A) Closing.--On receipt of a purchase request from a
lessee or CFRA, the Secretary shall close on the property and
prepare all other properties for closing within 45 days.
(B) Payment.--At the closing for a property--
(i) the lessee or CFRA shall deliver to the Secretary
payment for the property, which the Secretary shall
distribute in accordance with section 6; and
(ii) the Secretary shall convey the property to the lessee
or CFRA.
(C) Appraisal.--The Secretary shall determine the purchase
amount of each property based on the appraisal conducted
under subsection (c)(2), the amount of the bid under
subsection (c)(1), and the proportionate share of
administrative costs pursuant to subsection (e). The total
purchase amount for all properties shall equal the total bid
amount plus administrative costs under subsection (e).
(D) Timing.--CFRA and the lessees shall purchase at least
75 percent of the properties not later than August 1 of the
year that begins at least 12 months after title to the first
property is conveyed by the Secretary to a lessee.
(E) Right to renew.--The Secretary shall afford the lessees
who have not purchased properties under this section the
right to renew the term of the existing lease for 2 (but not
more than 2) consecutive 5-year terms.
(F) Reimbursement.--A lessee shall reimburse CFRA for a
proportionate share of the costs to CFRA of completing the
transactions contemplated by this Act, including any interest
charges.
(G) Rental payments.--All rent received from the leases
shall be distributed by the Secretary in accordance with
section 6.
(e) Administrative Costs.--Any reasonable administrative
costs incurred by the Secretary, including the costs of
survey and appraisals, incident to the conveyance under
subsection (a) shall be reimbursed by the purchaser or CFRA.
(f) Timing.--The Secretary shall make every effort to
complete the conveyance under subsection (a) not later than 1
year after the satisfaction of the condition established by
section 8(b).
(g) Closings.--Real estate closings to complete the
conveyance under subsection (a) may be staggered to
facilitate the conveyance as agreed to by the Secretary and
the purchaser or CFRA.
(h) Conveyance to Lessee.--If a lessee purchases a property
from the purchaser or CFRA, the Secretary, at the request of
the lessee, shall have the conveyance documents prepared in
the name or names of the lessee so as to minimize the amount
of time and number of documents required to complete the
closing for the property.

SEC. 5. AGREEMENT.

(a) Management of Silo's Campground.--Not later than 180
days after the date of enactment of this Act, the Secretary,
acting through the Commissioner of Reclamation, shall--
(1) offer to contract with the Commissioners to manage the
Silo's campground;
(2) enter into such a contract if agreed to by the
Secretary and the Commissioners; and
(3) grant necessary easements for access roads within and
adjacent to the Silo's campground.
(b) Concession Income.--Any income generated by any
concession that may be granted by the Commissioners at the
Silo's recreation area--
(1) shall be deposited in the Canyon Ferry-Broadwater
County Trust; and
(2) may be disbursed by the Canyon Ferry-Broadwater County
Trust manager as part of the income of the Trust.

SEC. 6. USE OF PROCEEDS.

Notwithstanding any other provision of law, proceeds of
conveyances under this Act shall be available, without
further Act of appropriation, as follows:
(1) 10 percent of the proceeds shall be applied by the
Secretary of the Treasury to reduce the outstanding debt for
the Pick-Sloan project at the Reservoir.
(2) 90 percent of the proceeds shall be deposited in the
Montana Fish and Wildlife Conservation Trust.

SEC. 7. MONTANA FISH AND WILDLIFE CONSERVATION TRUST.

(a) Establishment.--The Secretary, in consultation with the
State congressional delegation and the Governor of the State,
shall establish a nonprofit charitable permanent perpetual
public trust in the State, to be known as the ``Montana Fish
and Wildlife Conservation Trust'' (referred to in this
section as the ``Trust'').
(b) Purpose.--The purpose of the Trust shall be to provide
a permanent source of funding to acquire publicly accessible
land and interests in land, including easements and
conservation easements, in the State from willing sellers at
fair market value to--
(1) restore and conserve fisheries habitat, including
riparian habitat;
(2) restore and conserve wildlife habitat;
(3) enhance public hunting, fishing, and recreational
opportunities; and
(4) improve public access to public land.
(c) Administration.--
(1) Trust manager.--The Trust shall be managed by a trust
manager, who--
(A) shall be responsible for investing the corpus of the
Trust; and
(B) shall disburse funds from the Trust on receiving a
request for disbursement from a majority of the members of
the Joint State-Federal Agency Board established under
paragraph (2) and after determining, in consultation with the
Citizen Advisory Board established under paragraph (3) and
after consideration of any comments submitted by members of
the public, that the request meets the purpose of the Trust
under subsection (b) and the requirements of subsections (d)
and (e).
(2) Joint state-federal agency board.--
(A) Establishment.--There is established a Joint State-
Federal agency Board, which shall consist of--
(i) 1 Forest Service employee employed in the State
designated by the Forest Service;
(ii) 1 Bureau of Land Management employee employed in the
State designated by the Bureau of Land Management;
(iii) 1 Bureau of Reclamation employee employed in the
State designated by the Bureau of Reclamation;
(iv) 1 United States Fish and Wildlife Service employee
employed in the State designated by the United States Fish
and Wildlife Service; and
(v) 1 Montana Department of Fish, Wildlife and Parks
employee designated by the Department.
(B) Requests for disbursement.--After consulting with the
Citizen Advisory Board established under paragraph (3) and
after consideration of the Trust plan prepared under
paragraph (3)(C) and of any comments or requests submitted by
members of the public, the Joint State-Federal Agency Board,
by a vote of a majority of its members, may submit to the
Trust Manager a request for disbursement if the Board
determines that the request meets the purpose of the Trust.
(3) Citizen advisory board.--
(A) In general.--The Secretary shall nominate, and the
Joint State-Federal Agency Board shall approve by a majority
vote, a Citizen Advisory Board.
(B) Membership.--The Citizen Advisory Board shall consist
of 4 members, including 1 with a demonstrated commitment to
improving public access to public land and to fish and
wildlife conservation, from each of--
(i) a Montana organization representing agricultural
landowners;
(ii) a Montana organization representing hunters;
(iii) a Montana organization representing fishermen; and
(iv) a Montana nonprofit land trust or environmental
organization.
(C) Duties.--The Citizen Advisory Board, in consultation
with the Joint State-Federal Agency Board and the Montana
Association of Counties, shall prepare and periodically
update a Trust plan including recommendations for requests
for disbursement by the Joint State-Federal Agency Board.
(D) Objectives of plan.--The Trust plan shall be designed
to maximize the effectiveness of Montana Fish and Wildlife
Conservation Trust expenditures considering--
(i) public needs and requests;
(ii) availability of property;
(iii) alternative sources of funding; and
(iv) availability of matching funds.
(4) Public notice and comment.--Before requesting any
disbursements under paragraph (2), the Joint State-Federal
Agency Board shall--
(A) notify members of the public, including local
governments; and
(B) provide opportunity for public comment.
(d) Use.--
(1) Principal.--The principal of the Trust shall be
inviolate.
(2) Earnings.--Earnings on amounts in the Trust shall be
used to carry out subsection (b) and to administer the Trust
and Citizen Advisory Board.
(3) Local purposes.--Not more than 50 percent of the income
from the Trust in any year shall be used outside the
watershed of the Missouri River in the State, from Holter Dam
upstream to the confluence of the Jefferson River, Gallatin
River, and Madison River.
(e) Management.--Land and interests in land acquired under
this section shall be managed for the purpose described in
subsection (b).

SEC. 8. CANYON FERRY-BROADWATER COUNTY TRUST.

(a) Establishment.--The Commissioners shall establish a
nonprofit charitable permanent perpetual public trust to be
known as the ``Canyon Ferry-Broadwater County Trust''
(referred to in this section as the ``Trust'').
(b) Priority of Trust Establishment.--
(1) Condition to sale.--No sale of property under section 4
shall be made until at least $3,000,000, or a lesser amount
as offset by in-

[[Page H10843]]

kind contributions made before full funding of the trust, is
deposited as the initial corpus of the Trust.
(2) In-kind contributions.--
(A) In general.--In-kind contributions--
(i) shall be approved in advance by the Commissioners;
(ii) shall be made in Broadwater County;
(iii) shall be related to the improvement of access to the
portions of the Reservoir lying within Broadwater County or
to the creation and improvement of new and existing
recreational areas within Broadwater County; and
(iv) shall not include any contribution made by Broadwater
County.
(B) Approval.--Approval by the Commissioners of an in-kind
contribution under subparagraph (A) shall include approval of
the value, nature, and type of the contribution and of the
entity that makes the contribution.
(3) Interest.--Notwithstanding any other provision of this
Act, all interest earned on the principal of the Trust shall
be reinvested and considered part of its corpus until the
condition stated in paragraph (1) is met.
(c) Trust Management.--
(1) Trust manager.--The Trust shall be managed by a
nonprofit foundation or other independent trustee to be
selected by the Commissioners.
(2) Use.--The Trust manager shall invest the corpus of the
Trust and disburse funds as follows:
(A) Principal.--A sum not to exceed $500,000 may be
expended from the corpus to pay for the planning and
construction of a harbor at the Silo's recreation area.
(B) Interest.--The balance of the Trust shall be held and
the income shall be expended annually for the improvement of
access to the portions of the Reservoir lying within
Broadwater County, Montana, and for the creation and
improvement of new and existing recreational areas within
Broadwater County.
(3) Disbursement.--The Trust manager--
(A) shall approve or reject any request for disbursement;
and
(B) shall not make any expenditure except on the
recommendation of the advisory committee established under
subsection (d).
(d) Advisory Committee.--
(1) Establishment.--The Commissioners shall appoint an
advisory committee consisting of not fewer than 3 nor more
than 5 persons.
(2) Duties.--The advisory committee shall meet on a regular
basis to establish priorities and make requests for the
disbursement of funds to the Trust manager.
(3) Approval by the commissioners.--The advisory committee
shall recommend only such expenditures as are approved by the
Commissioners.
(e) No Offset.--Neither the corpus nor the income of the
Trust shall be used to reduce or replace the regular
operating expenses of the Secretary at the Reservoir, unless
approved by the Commissioners.

SEC. 9. AUTHORIZATION.

(a) In General.--The Secretary is authorized to--
(1) investigate, plan, construct, operate, and maintain
public recreational facilities on land withdrawn or acquired
for the development of the project;
(2) conserve the scenery, the natural historic,
paleontologic, and archaeologic objects, and the wildlife on
the land;
(3) provide for public use and enjoyment of the land and of
the water areas created by the project by such means as are
consistent with but subordinate to the purposes of the
project; and
(4) investigate, plan, construct, operate, and maintain
facilities for the conservation of fish and wildlife
resources.
(b) Costs.--The costs (including operation and maintenance
costs) of carrying out subsection (a) shall be
nonreimbursable and nonreturnable under Federal reclamation
law.

The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Utah (Mr. Hansen) and the gentleman from California (Mr. Miller) each
will control 20 minutes.
The Chair recognizes the gentleman from Utah (Mr. Hansen).
Mr. HANSEN. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, H.R. 3963 authored by the gentleman from Montana (Mr.
Hill) would establish terms and conditions under which the Secretary of
the Interior must convey fee title to leaseholders in certain
properties around Canyon Ferry Reservoir in Montana. Canyon Ferry
Reservoir is a man-made lake located in central Montana near Helena.
The Bureau of Reclamation presently leases 265 cabin sites around the
lake to local citizens. This section would direct the Secretary of
Interior to sell these leaseholds at fair market value to a private
interest. The sites would be sold at public auction. The present
leaseholders would then have the opportunity to purchase title to the
land.
This bill is a compromise negotiated with the gentleman from Montana
(Mr. Hill) and Senator Baucus of Montana and with the administration.
Mr. Speaker, this is a very important bill, and I urge my colleagues
to support it.
Mr. Speaker, I reserve the balance of my time.
Mr. MILLER of California. Mr. Speaker, I yield myself such time as I
may consume.
(Mr. MILLER of California asked and was given permission to revise
and extend his remarks.)
Mr. MILLER of California. Mr. Speaker, I rise in opposition to H.R.
3963. Here we are again, in the last days of the session, presented
with a bill that has never cleared the Committee on Resources and
violates the Budget Act and sets precedents on the use of and
disposition of Federal resources.
I understand why Senator Baucus and the gentleman from Montana (Mr.
Hill) have been in discussions with the administration on this
initiative, and he has a letter from OMB stating they will not object.
That is worth considering, but I believe there are still serious
problems with this legislation.
First, the bill sets up a bidding process for these cabin sites,
supposedly to get fair and open bids on the property. However, the bill
then sets terms and conditions that rig the bid so that effectively
there is only one bidder, that just happens to be the Canyon Ferry
Recreation Association.
Next the bill takes any funds received from these sales and sets up a
fund for the Federal, state and local management board, trust funds for
the resources. I guess some would argue why we have the board or do not
have the board, but I think, more importantly, that this is the
conveyance of public resources, ostensibly to private hands. And yet,
at the same time, when we look at the process to receive fair market
value, it really precludes others from bidding on these properties,
because if any bidder is other than the Canyon Ferry Recreation
Association, that purchaser then has to provide for an option to
purchase to the lessees, the existing lessees, and also for those who
decide they do not want to purchase, it has to provide them continuance
of the lease.

{time} 1054

Well, is highly unlikely that somebody who seeks to have one of these
properties for their use and enjoyment would bid in that process and
therefore, then by default, what we have is Canyon Ferry being really
the only bidder in the process, and they also get the benefit in that
situation of fully depreciating, excluding the value of the
improvements on that property.
However, under existing Federal law at the end of their lease, the
value, if there are cabins or improvements, would revert to the Federal
Government as it would in the private sector. If one makes improvements
on lease property, generally those enure to the property owner.
So, I think for those reasons that this legislation should undergo
further consideration. I also think because of the fact that we have,
scattered throughout the public lands in this country, hundreds of
thousands of inholdings, lease holdings and all the rest, that we ought
to make sure of what we are doing here, prior to setting a precedent on
how we would convey those properties either to existing private owners
or on a bid process, or whether in fact they should revert to the
people of the United States.
Mr. Speaker, reserve the balance of my time.
Mr. HANSEN. Mr. Speaker, I yield such time as he may consume to the
gentleman from Montana (Mr. Hill), the sponsor of this legislation.
Mr. HILL. Mr. Speaker, I thank the gentleman from Utah (Mr. Hansen)
for yielding to me, and thank him for bringing this bill to the floor.
Mr. Speaker, let me point out that what this bill will do is to
authorize the sale of 240 cabin sites on Canyon Ferry Reservoir to
people who currently have cabins that have been built on these sites.
These are truly cabins. These are not houses. They are not high-value
properties. These are simply recreational properties.
But the management of this reservoir has been a matter of
considerable dispute and controversy ever since the reservoir was
originally constructed back in the late 1940s. What this bill attempts
to do by selling these cabin sites to these cabin owners is to resolve
an area that has been contentious and a long-standing matter of
dispute.

[[Page H10844]]

This bill has the support of the governor of the State of Montana. It
has the support of both United States Senators, Democrat and
Republican. It has the support of county commissioners in Broadwater
and Lewis and Clark County, Democrats and Republicans. It has the
support of the administration. It has the support of sportsman groups,
and it has the support of local conservation groups.
On October 10, the Executive Office of the President wrote to Senator
Baucus saying, ``I am writing to express the Administration's support
for the substitute amendment to . . . the Montana Fish and Wildlife
conservation act.'' It goes on to say that this bill would create ``a
unique opportunity to exchange lands at Canyon Ferry Reservoir for
other lands in the State to conserve fish and wildlife, enhance public
hunting, fishing, and recreation opportunities, and improve public
access to public lands.''
It is important for my colleagues to understand that this is
basically a land exchange bill. The proceeds from the sale of these
lots will be put into a trust fund, and this trust fund will be used
for the purposes of acquiring other lands in this area or other
conservation efforts in those areas.
I want my colleagues to understand that this area on the Missouri
River from Three Forks to Holter Dam is an area that is prime trout
habitat. In fact, the watershed there is a watershed that supports
critical cutthroat habitat, and the funds from the sale of these lots
will be used for the purposes of conserving that habitat which is
extremely critical. As we all know, the cutthroat has been proposed as
a threatened species. It will also be used to accomplish other
conservation efforts to acquire other access to the river and to the
reservoir and it will also be used to secure other lands.
Mr. Speaker, it is important to note that the trustees over this
trust fund will be appointed by the Secretary of the Interior, so the
Secretary will approve whoever serves on this trust fund, and the trust
fund itself will be protected. Only the income from the trust fund can
be used, so it will be a permanent trust fund to help secure important
habitat and to provide access.
Mr. Speaker, the gentleman from California (Mr. Miller) has pointed
out that there is some controversy, or was some controversy, over the
method of selling the lots. Substantially, those were changed at the
request of the administration so that it is clear now these lots will
be valued using existing law for the purposes of determining the
appraisal and for the purposes of bidding.
It is important for Members to understand that these lots can only be
sold at or above fair market value, which will be determined by an
independent appraisal process. It is true that cabin owners will have
the option to buy those lots, a last refusal right, but it is important
for my colleagues to understand that that is necessary because
currently the leases go to the year 2008, and there are improvements on
these lots that have to be accommodated somehow in the transaction.
I would just urge my colleagues to look at the fact that the
administration supports this; Democrats and Republicans that are local
and here in Washington support it; it has the support of landowners and
conservation groups and sportsman groups. I think that that in and of
itself indicates this is a consensus approach to resolving a long-
standing problem.
Mr. Speaker, with that I urge all of my colleagues to support the
bill.
Mr. HANSEN. Mr. Speaker, I have no further requests for time, and I
yield back the balance of my time.
Mr. MILLER of California. Mr. Speaker, I yield back the balance of my
time.
The SPEAKER pro tempore (Mr. Gillmor). The question is on the motion
offered by the gentleman from Utah (Mr. Hansen) that the House suspend
the rules and pass the bill, H.R. 3963, as amended.
The question was taken.
Mr. MILLER of California. Mr. Speaker, I object to the vote on the
ground that a quorum is not present and make the point of order that a
quorum is not present.
The SPEAKER pro tempore. Pursuant to clause 5, rule I, and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
The point of no quorum is considered withdrawn.

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